On behalf of Cooper, Tanis & Armas, P.C. posted in divorce on Thursday, October 1, 2015.
Colorado couples who are facing the end of their marriages are often confronted with a variety of emotions. This can cause many of them to lose sight of the financial ramifications of a divorce, and it is important that they face the issues that are often likely to arise.
Going to see an attorney prepared with a list of assets and debts is helpful, along with a list of salaries, stocks and bonds and other possessions. It is also important to bring along retirement or military pension information. Since Colorado is an equitable distribution state, assets will be divided in what the court considers a fair manner unless the couple can otherwise agre. The assets that are subject to division generally include only those that were acquired during the marriage ad do not include personal bequests or properties separately acquired by a person before the marriage took place.
Another financial consideration during a divorce is whether an ex-spouse is granted alimony or child support. The individual who pays alimony may take these payments as a tax deduction, while the recipient must declare it as income. This may be factored into the division of assets. If a business is jointly owned, considerations include whether one spouse may buy out the other and other similar questions. Tax implications may be involved in the matter of retirement funds, which might adversely impact a newly divorced individual by having to pay taxes all at once unless the division is properly structured.
A person who is contemplating divorce might want to obtain the assistance of a family law attorney. Because of the many financial considerations involved, an attorney may be able to assist in property division as well as providing insight into the way taxes and spousal support payments may affect living without the financial support of the other spouse.